The losses in his funds have been getting worse all year. He's down 21.7% in August alone In Advantage Plus.

And in Paulson Partners he's down 14.4% in August, down 11.8% for the year, according to the Wall Street Journal.

This morning came worse news. He lost millions by selling his stake in Bank of America at a loss last quarter, before Warren Buffett's announcement this morning that he would invest $5 billion in the company.

Berkshire Hathaway said this morning that it would purchase 50,000 preferred shares for $5 billion pushing BofA's stock price nearly 20% higher in early trading.